Telekom Austria posts 1.4% rise in revenue on higher equipment sales

28 Oct 2016

Telekom Austria Group has reported revenues of EUR1.07 billion (USD1.2 billion) for the three months ended 30 September 2016, an increase of 1.4% from EUR1.06 billion in the year-ago period. The growth was mainly attributed to higher equipment revenues and improving trends in service revenues, which outweighed the negative impact stemming from the abolition of EU roaming rates as of 30 April 2016. Telekom Austria reported revenue growth across all of its operating units, with the exception of Macedonia, where turnover decreased by 7.0% year-on-year, driven by a decrease in wholesale interconnection revenues and visitor roaming. Group EBITDA for Q3 2016 rose to EUR415.5 million from EUR386.3 million in the year-ago period, but excluding one-off and restructuring effects, as well as forex impacts, EBITDA decreased by 1.0%, due to the abolition of EU roaming rates. Telekom Austria reported net income of EUR143.2 million in the three-month period, compared to EUR137.1 million in 3Q15.

In operational terms, Telekom Austria Group saw an increase in the number of fixed line subscribers, largely driven by the acquisitions of fixed line reseller Amis in Slovenia and Croatia (consolidated as of 1 September 2015) and cableco Blizoo in Bulgaria (1 October 2015), while other activity includes the merger of Vip Operator with ONE in Macedonia (1 October 2015). At 30 September 2016 the group reported a total of 5.61 million wireline customers, an increase of 1.7% from 5.51 million a year earlier, as well as 20.73 million wireless subscribers, down slightly from 20.78 million in 3Q15, as increases in Austria (up by 3.7%), Croatia (1.0%) and Slovenia (2.0%) failed to offset declines in all other segments.

Austria, A1 Telekom Austria Group